Positive growth outlook for New Car Sales in 2015
New car sales for the UK in 2015 has a positive outlook as suggested by Mike Allen a stockbroker from Zeus Capital. The reason behind the expected growth is because the UK new car market has a very favourable risk-reward ratio. The ongoing consolidation will provide the required “additional growth kicker” to give the market a boost.
The sector is going to move into mid-cycle, and during this phase the growth rates will be steady because of its progress in moving out of the recovery phase. Mike Allen goes on to suggest that 4 out 5 car registrations are as a result of PCP sales, which is one of the main components to the surge of new car sales.
The buying cycles are short which means the new car sector has not yet reached its peak. This is comparable to the US car market because of how enticing financing offers are for customers.
The only concern in this sector is the pricing pressure that may be created as a result of higher supply in the used car market. However, new car dealers do have solid pricing structures in place to offer their customers.
Therefore, if the new car market can outperform the used car one it will have a much easier time experiencing growth.
A selection of new cars for 2015
Disadvantages: Top speed limited to 155mph
Advantages: Great economy and performance, stylish interior, balanced handling and honed.
Disadvantages: diesel refinement is below par, pricey options, could be better equipped.
View entire range of new car models for 2015
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